Back Door Take Over

In a move which is covered by a media smoke screen the Obama administration is now moving toward taking control of the banks to which it force fed loans under the Tarp plan originated under the Bush administration. Back then we were told that the banks needed additional capital in order to continue to make loans, or to stay liquid, or well, it seemed the reason varied with what the weather was at the time.

Recently we have seen several banks loudly announcing intent to return the money and, stunningly hearing the Treasury department resisting the repayment. Banks were obviously spooked by the termination of the CEO of General Motors, ordered by Il Duce  President Obama. They saw the future and decided not to play in that game. As the Treasury Dept stalled, the Administration has now come up with another scheme. According to a NY Times story , the Obama Administration plans to convert the loans into shares of common stock. The Times obligingly states this is so that the cost will be minimal. After all, with a trillion dollar deficit, they can’t possibly find another billion or so to save a bank. 

The real story is that once the TARP funds are ‘converted’ to common stock, the US Government, through the Department of the Treasury will be major stake holders in the largest banks in the nation. Without speaking the words, they will have effectively nationalized the banks.  The Times and other media outlets are aware that most Americans are leery of that, instinctively knowing that nationalizing the economy is not the best way to run things. (Medicare is great, right) So the stories going to print now position it as a money saving move, or one which will allow the banks to free up cash.

So, follow the chess board here: First, the Treasury essentially forces the banks to accept loans, needed or not. Demonize the heads of financial institutions who ‘Took government money then spent it on bonuses’ .Then they delay or refuse repayment of those loans until the final part can be put in place. Finally, convert the ‘loans’ into common stock, taking control of the banks in order to extend government control of the economy.

We are moving in lockstep toward a command economy with all the dangers that will bring to our system. Unless Americans speak out, and demand accountability this will all happen without anyone interfering. We will wake up one morning with the very nature of our republic unalterably changed.  All this is being done with absolutely no input from the people, the congress or any legislative support.  This is an administrative takeover of the financial sector. Find me ONE place in the Constitution that authorizes this.

Keep the Faith

The Rev